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A ray of sunshine on Disney theme park operations and optimistic expectations ahead of the company’s quarterly earnings report on Thursday helped push the company’s shares up 5% to record territory.
The action closed at $ 190, up 5% on Monday, after reports the company planned to rehire up to 1,000 workers to help it host a food and drink festival at California Adventure in March. . Eating out was allowed to resume by the state last week. Few details were revealed about the festival, which was reported by media including Hello america and the Los Angeles Times but not officially announced by park officials. Theme parks, historically an engine of revenue generation for the company, are on their knees, with 28,000 workers laid off during Covid-19.
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Disney’s gains helped the Dow Jones Industrial Average hit a new high at 31,385.76, its sixth consecutive session of positive movement. The Nasdaq, S&P 500 and Russell 2000 also all closed at record highs.
AMC was a notable exception to the rally, with shares in the top movie theater circuit falling nearly 10% to $ 6.18 on average trading volume. Shares of the company had posted sky-high gains in recent sessions, as retail investors organized on Reddit placed big bets on shares of AMC, GameStop and several other struggling companies in a bid to make pressure on short sellers.
Even after recent declines, the stock price is still at its highest level since Labor Day last year, when Warner Bros. opened. Principle and optimism for theatrical releases was high in many sectors of the industry. Since then, Covid’s prices have worsened, the main markets have remained closed and the exhibitor has had to scramble to raise funds. Its most recent report to investors indicated that it had sufficient liquidity to get through 2021 even as pandemic closures persist.
Disney is due to release its financial results for its first fiscal quarter on Thursday amid abundant bullishness over its pivot to streaming. As of mid-December, Disney + had 86.8 million subscribers worldwide and the company has increased its prices and increased its five-year subscription forecast. Wall Street analysts expect revenues to fall 23% to $ 15.9 billion in the quarter ending December, with an adjusted loss of 42 cents per share, a big change from earnings of $ 1.53 per share over the same period in 2019.
The number of streaming subscribers is expected to extend the optimistic outlook of Disney’s outlook, with the company expecting the total number of Disney +, ESPN + and Hulu subscribers to exceed 300 million by 2025. Even though the company recorded its first full year of losses in decades in fiscal 2020, the belief that it can match Netflix, which has 203.7 million subscribers, emboldens many investors.
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